Question

The 15 homes in a new development are each to be sold for one of three different prices so that the developer receives an average (arithmetic mean) of $200,000 per home. If 4 of the homes are to be sold for $170,000 each and 5 are to be sold for $200,000 each, what will be the selling price of each of the remaining 6 homes?

Answer 1

Answer:

$220,000

Explanation:

Given:

Number of homes = 15

Average price of the homes = $200,000

Thus,

Total price of 15 homes = 15 × $200,000 = $3,000,000

Now,

4 homes  were sold for $170,000 each

Therefore, the total price of 4 homes = 4 × $170,000 = $680,000

And,

5 homes  were sold for $200,000 each

Therefore, the total price of 5 homes = 5 × $200,000 = $1,000,000

Thus,

The total price of remaining 6 houses

= $3,000,000 - $680,000 - $1,000,000

= $1,440,000

Therefore,

The price of the 6 homes = $\frac{\textup{1,320,000}}{\textup{6}}$

= $220,000